“Miami real estate prices are currently down around 50% from the 2007 peak, and it looks like the area is finding a bottom,” the S&A Digest e-letter reported this week.
“The biggest increase comes in the high-end market… 103 houses and condos sold for $2 million or more last month, up 21.2% from May and 27.2% from a year earlier.”
Stansberry Research is bullish on Miami real estate. (Our founder, Porter Stansberry, is putting his money where his mouth is there.)[ad#Google Adsense 336×280-IA]But it’s not just Miami real estate that might be ready to climb… My new True Wealth Systems service is indicating the U.S. housing market may have already bottomed.
Our True Wealth Systems computers aren’t saying “buy” yet. But I like what they’re showing me…
Home prices are just starting to meet all three criteria that I look for in an investment. I look for investments that are:
2) Ignored or hated
3) In the start of an uptrend
As for cheap, U.S. houses are more affordable than they’ve ever been. “Affordable” takes three factors into account – the median home price, the median household income, and current mortgage rates.
In short, with the dramatic fall in home prices AND mortgage rates, housing is cheaper than ever.
As for hated (or ignored)… after such a dramatic fall in home prices over the last four years, investors have given up. Housing is not at the top of the headlines anymore.
And people in the industry are as dejected as ever. One gauge of industry sentiment I track is the National Association of Home Builders Sentiment Index. It’s hovering near all-time lows. (This happens at market bottoms.)
As for the uptrend… we’re almost there. The chart below shows median home prices in the U.S.
Nobody is talking about it, but we’re actually seeing an uptrend in new home prices. The trend (the 12-month moving average) is still down in existing home prices. But nationwide, they were up last month versus the same month a year ago.
At this point, we can’t confirm the bottom is in and a new uptrend is underway… But we’re closer than we have been in years.
Housing is a great value. And investors are dejected. At this point, our True Wealth Systems computers are simply waiting for further confirmation of the uptrend before saying “buy.”
So I might be early in saying this. But I believe it’s true:[ad#article-bottom]If you were holding off until the market bottomed before you stepped in to buy real estate, don’t hold off any more. It’s time to put your money to work.
While things could possibly get cheaper from here, they could just as easily start going up.
By buying right now, you’ll be buying at the best value in American history. By holding out to buy something just a bit cheaper, you may miss the best real estate deal you will ever get.
So if you’re on the fence, get off it. Don’t wait any longer…
— Steve Sjuggerud[ad#jack p.s.]
Source: Daily Wealth